Author(s): Roby Setiadi
Companies use social media to improve efficiency in their supply chains in addition to build new business models of relationships with customers, employees, investors and other stakeholders. However until now, the purpose of utilizing social media for the service business sector has not been widely verified empirically in various studies, making some managers view that social media is not an effective means of promotion for service businesses. Adverse decisions can be made because of lack of information about the benefits of social media for marketing. This article attempts to analyze the extent to which companies are capable of using social media as a basis for marketing excellence. This study provides reliable constructs of utilization of social media marketing in order it can be useful information and materials of information decisions making for managers in hospitality industries. The sample in this study consists of 177 general managers and marketing managers in three to five star hotels in Jakarta based on data from the Jakarta Statistic Center in 2016 and the Indonesian Hotel and Restaurant Association (PHRI). Statistical test results show that the constructs of utilization of social media marketing includes means of retaining customers, customer improvement effectiveness, actively communicating with customers, intensively attracting customers, and proactively capturing customers. These results can implicitly direct and make the right decisions on the ways that service organizations can use social media as the main source of big data information.